III. CONCLUSION

For the reasons stated above, D.10-12-016 is modified to reflect the clarifications and corrections specified below. Rehearing of
D.10-12-016, as modified, is denied because no legal error has been shown.

Therefore IT IS ORDERED that:

1. D.10-12-016 is modified as follows:

a. The following sentence is added to Ordering Paragraph Number 2 on pages 203-204:

"In addition, Cal-Am shall file and serve the Public Agencies Financing Plan in this proceeding."

b. The following new Ordering Paragraph is added is Ordering Paragraph Number 13:

"Cal-Am shall file an application with the Commission to seek any ratepayer funding of costs in excess of the costs caps authorized in this Decision."

c. Ordering Paragraph Number 13 is renumbered as Ordering Paragraph Number 14 on page 206.

d. FOF Number 168 on page 184 is modified to read as follows:

"DRA maintains that the Regional Project could be jeopardized as the amount of groundwater that must remain in the basin increases."

e. FOF Number 213 on page 192 is modified to state:

"It is reasonable to require Cal-Am to update DRA and DWA staff on the design and refined cost estimates of the Cal-Am only facilities, because this approach will help to ensure that Cal-Am explains and justifies the project costs that are included in each Tier 2 advice letter. Cal-Am should meet with DRA and DWA on a quarterly basis."

f. The first full sentence of the first full paragraph on page 30 is modified to read:

"D.09-07-021 also removed the lot size and seasonal discounts from the first two tiers of Cal-Am's rate design scheme, which had insulated customers from the high cost of outdoor irrigation."

2. Rehearing of D.10-12-016, as modified, is denied.

This order is effective today.

Dated April 14, 2011, at San Francisco, California.

MICHAEL R. PEEVEY

President

TIMOTHY ALAN SIMON

MICHEL PETER FLORIO

CATHERINE J.K. SANDOVAL

MARK FERRON  Commissioners